A sublease agreement refers to a lease agreement in which all or part of a commercial building is entered into by a lessor (building owner) and the current lessee, and then the current lessee re-leases it to a third party within the scope of the lease. In this case, the current lessee is the lessor. You must obtain consent from the building owner to enter into a sublease agreement (release). In normal cases, it can be said that it is common to include the phrase “The lessor approves the lessee’s sublease (release)” in the special clause of the lease agreement between the lessor and the lessee.
If we summarize the stakeholders, the building owner becomes the lessor, and the lessee becomes the party who entered into a lease agreement with the lessor (building owner). If the lessee later re-leases to a third party, the lessee becomes a sublessee to the third party. has the status of and the third party becomes the sub-lessee. In other words, it can be organized into building owner (lessor), lessee (sub-lessee), and third party (sub-lessee).
A sublease contract is also established as a contract between a lessee (sublessor) and a third party (sublessee), and such contract is called a “sublease contract.” It is possible to enter into a sublease contract without the consent of the lessor (building owner), but in this case, there are no restrictions. The third party (sub-lessee) will not be able to claim rights against the lessor (building owner). Additionally, when a third party (sub-lessee) wishes to open a business registration certificate based on a sub-lease agreement, the tax office checks whether the building owner (lessor) consents. Therefore, a sublease contract must require the consent of the building owner (lessee).
In a sublease contract, the scope may be all or part of the scope contracted by the lessee with the lessor. For example, in the case of shared offices (Fast Five, WeWork, etc.) that are booming recently, the shared office operator signs a sublease agreement with shared office users (sublessees) at the location of the lessee (sublessee), rents the space, and rents out the shared office space. Each user (sub-lessee) opens a business registration certificate according to the sub-lease agreement.
©Fast Five
©WeWork
The relationship with a third party (sub-lessee) based on a sub-lease agreement with the consent of the building owner (lessor) is not a direct relationship, and even if the sub-lessee has paid rent, etc. to the lessee (sub-lessor), he cannot claim the right to lease from the building owner (lessor). Additionally, since the sublease contract is based on a lease contract, when the lease contract expires at the end of the period, the sublease contract also expires. However, if the contract is terminated by agreement between the building owner (lessor) and the tenant (sub-lessee) (early termination), the sub-lessee can claim its rights against the building owner (lessor) and tenant (sub-lessee).
Some building owners (landlords) do not approve sublease contracts because they believe that a “sublease contract” may affect their property rights and result in losses. However, on the other hand, there are cases where they do not approve sublease contracts, but on the other hand, they are used to attract quality tenants such as shared offices. Multiple lease agreements can have the effect of eliminating multiple vacancies and attracting tenants with higher than typical rents. Recently, although rental business operators (lessees) do not give sublease to a third party for business expansion and future business, there are many cases where the lessee or corporation requests the building owner (lessor) to agree to sublease when signing a lease for business expansion. It is a losing trend.
Therefore, in cases where multiple subtenants are not required for the purpose of a sublease business, such as a shared office, the building owner (lessor) approves the sublease contract to the lessee for the expansion and convenience of the lessee's business at the request of the lessee, but determines the number of times. A contract may be concluded. (Special terms: Sublease is approved only twice)
